menu

Avoiding Taxes is easy?

0
469 views

Why are rich people (billionaires+) always successful in avoiding taxes?

Tax Law
taxes
Wealth Management
Wasim Safdar
5 months ago

6 answers

0

High Net Worth Individuals still pay a significant amount of Federal and State taxes, However, most High Net Worth Individuals have major investments and most gains are recognized at the Long Term Capital Gains rate which is normally 20% vs Ordinary Income rates at 38%. This does not include state taxes. Every state is different so I can not estimate an average tax rate as some states have no taxes and others as high as 10% or more like New York. In addition, if real estate or Oil and Gas investments are made there are significant tax advantages that are available.

Ralph Anderson, CPA
5 months ago
0

Ther can hire topnoch layers and accountants to see where are the loopholes and they how best to exploite thoses in their favors., simple as it is.

Bo Chen
5 months ago
0

Some wealthth alwasy trick the tax system because they know how it works. Also, wealth creates moree wealth anyways.

Imane B
5 months ago
0

They invest where they get more bank of the buck, most of the times.

Ali Qudrat
5 months ago
Tax code is so complicated that only wealthy can benefit from such loopholes. It is mazing to see people with Billions (yes, not millions) are often reluctant to be taxed more. Instead, they invest in finding the best way to minize their taxes. - Hassan 4 months ago
0

They have expert advice at their disposal, so their wealth continues to grow.

Hassan Qudrat-Ullah
4 months ago
Hassan Qudrat-Ullah, agreed. - Wasim 4 months ago
Wasim Safdar and Hassan Qudrat-Ullah, I respectfully differ. They earn it the hard way. They have every right to minimize not evade the taxes. - Tahir 4 months ago
0

With digitization, there is a lot of transparency in all the dealings and authorities can mine details at few clicks of button. So, the escape routes for tax avoidance are getting plugged and it will become extremely difficult to conceal income and avoid taxes.

Having said that, the path of saving taxes is always open to all. People need to be aware of Personal Finance details and rather than leaving everything to their consultants and chartered accountants, should also take deep interest in knowing the basics of money management and the various tax saving options available at one's disposal. Being fully aware and then actually managing your income and tax returns so as to exploit these tax saving instruments is critical to save tax. An advanced level understanding of if the returns are tax free or taxable also helps in choosing the right instruments for investment.

Apart from saving tax, the practice also helps in investing for the future. So its easy, provided one is "Money-Minded" too.

Shabbir Padhri
4 months ago
Shabbir Padhri I dont think path to saving is open to all. Think about fold who hardly cake bring food to their table, how can they even think about savings. - Wasim 4 months ago

Have some input?